Physical servers in a network may be located in a rack unit that houses a plurality of servers. The physical servers within a rack unit may be managed by a top of rack (ToR) switch that routes communications between the servers and to other external network elements. Additionally, the physical servers may be configured to host one or more virtual machines that may be arranged in one or more virtual networks or subnets. Upon joining the network, the virtual machines are assigned context identifiers, such as an Internet Protocol (IP) address, Media Access Control (MAC) address and subnet assignment. These context identifiers are used for communications between virtual machines.